Best Cheap Car Insurance Companies for High-Risk Drivers in Alaska


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ByMark Fitzpatrick
Edited byKathryn Schroeder
ByMark Fitzpatrick
Edited byKathryn Schroeder

Updated: May 20, 2024

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Insurance companies may assess you as high-risk when you have a poor driving record and, hence, your premium may be higher. However, by comparing rates from several insurers, you can still find a cost-effective policy that meets your expectations.

State Farm meets the highest standards for balancing customer service and affordability in Alaska for high-risk drivers. State Farm’s policy for high-risk drivers is also the least expensive in the state, costing approximately $1,071 per year. Your specific insurance quote may vary significantly depending on various factors.

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2024

Best Companies for High-Risk Drivers in 2023

Many insurance companies believe that the chances of high-risk drivers filing a claim are greater. You may be labeled a high-risk motorist if you have a series of at-fault accidents, tickets or a DUI conviction on your record. A teen driver's inexperience on the road makes insurance for them higher as they are a risky customer.

In order to compensate for the higher probability of a claim, insurance firms often assess a higher premium to high-risk drivers. It is recommended that high-risk drivers in Alaska prepare for around a 26% increase in their auto insurance premiums.

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WHAT EXACTLY IS A HIGH-RISK DRIVER?

A high-risk driver has committed significant traffic violations. Some examples are driving while intoxicated, driving with a revoked or suspended license and drag racing.

A flawless driving record may not always exclude you from being categorized as a high-risk driver in certain situations. Generally, insurers consider the following types of drivers as high-risk drivers:

  • Drivers with a history of traffic violations or at-fault accidents
  • Drivers with a DUI conviction
  • Drivers caught driving with a suspended or revoked license
  • Young drivers with a lack of driving experience
  • Drivers who drive sports cars or participate in drag racing
  • Drivers with bad credit or lapses in insurance coverage

Cheapest Car Insurance in Alaska for High-Risk Drivers

According to MoneyGeek's research, State Farm offers the most affordable auto insurance for high-risk drivers in Alaska. The average annual premium for this provider's policy is $1,071.

Check out MoneyGeek's comprehensive review of State Farm for more details on the company’s prices, pros and cons.

State FarmAnnual Premium$1,071
GEICOAnnual Premium$1,424
AllstateAnnual Premium$1,424
ProgressiveAnnual Premium$1,492
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SR-22 INSURANCE

In Alaska, SR-22 insurance is required for drivers who have been convicted of a serious traffic infraction or who have been found driving without insurance or a license. SR-22 is a document that your insurer submits to prove your financial responsibility by attesting that your insurance satisfies the state's minimum requirements.

Best Car Insurance in Alaska for High-Risk Drivers

According to MoneyGeek's analysis, State Farm has the greatest rating for high-risk drivers in Alaska, receiving a score of 96 out of 100. Our comprehensive review of State Farm's coverage options, average costs and level of customer service will give you a better understanding of the company.

GEICO is the second-best among the high-risk insurers in Alaska, with a score of 51 out of 100. Our review of GEICO provides further details.


1
State FarmBest for High-Risk Drivers
Score:96

5/5

Affordability Rating

5/5

Satisfaction Rating

4.5/5

Claims Rating

5/5

Financial Stability Rating

Geek Quick Take
Geek Quick Take

In Alaska, the annual cost of high-risk auto insurance from State Farm is about $1,071, the cheapest of all companies analyzed. High-risk drivers' insurance premiums from this insurer are approximately 11% more than those of clean-record drivers.

More About State Farm

State Farm is a national company that usually offers reasonable rates. It only offers a few add-on coverages, such as ridesharing insurance.

Discounts may be available for high-risk drivers, including good student, anti-theft system, multiple car and for taking driver's education when a young driver.

However, the company does not provide common coverages, such as accident forgiveness, gap insurance and better car replacement coverage.

2
GEICO
Score:51

0.8/5

Affordability Rating

5/5

Satisfaction Rating

5/5

Claims Rating

5/5

Financial Stability Rating

Geek Quick Take
Geek Quick Take

GEICO is the second-best and second-cheapest in Alaska for high-risk drivers, quoting an average of $1,424 per year. Its average quote for high-risk drivers is around 38% higher than that of those with a clean record.

More About GEICO

GEICO offers various add-on coverages, such as roadside assistance, accident forgiveness and rental car reimbursement.

In addition, GEICO provides uncommon discounts, like for airbags, anti-lock brakes and daytime running lights. There is also a discount for completing a driver’s education course. GEICO’s mechanical breakdown insurance is a unique add-on endorsement.

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MONEYGEEK EXPERT TIP

If you're on a tight budget but still want quality coverage, it shouldn't be a tradeoff you have to make — you can look for low-income auto insurance in Alaska. You could choose state minimum coverage, given that no government-backed insurance program exists for low-income drivers.

Cheapest Car Insurance in Alaska for Drivers With a DUI

MoneyGeek found State Farm's rate to be the most affordable in Alaska for drivers with a DUI conviction, coming in at an average annual cost of $1,042. Read our comprehensive State Farm review to find out more about the company's customer service, coverage options and potential for savings.

For active-duty and retired military members in the state who have a DUI, USAA may be another cheap high-risk auto insurance alternative.

State FarmAnnual Premium$1,042
ProgressiveAnnual Premium$1,262
AllstateAnnual Premium$1,495
GEICOAnnual Premium$2,112
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LOOK-BACK PERIODS

The term "look-back period" describes the length of time a DUI conviction will remain on a driver's record. While the look-back period varies from one state to the other, in most cases, they are long, so repeat offenders might receive longer prison terms or higher fines and penalties. The look-back period in Alaska is fifteen years.

Cheapest Car Insurance in Alaska for Teenage Drivers

Teen drivers are generally considered high-risk drivers. For Alaska’s teen drivers, GEICO is the most affordable auto insurance provider, per MoneyGeek's research. For teenagers, the average yearly premium for auto insurance is $3,597.

However, your age, among other factors, will affect your actual rate. Check out our review of GEICO to learn more about this insurance provider.

GEICOAnnual Premium$3,597
State FarmAnnual Premium$4,037
AllstateAnnual Premium$4,648
ProgressiveAnnual Premium$7,653
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MONEYGEEK EXPERT TIP

Teenagers and college students generally pay a very high auto insurance premium. Full coverage car insurance is more expensive than state minimum coverage, but it is worth considering due to the comprehensive coverage it provides in the event of an accident.

To find the best and cheapest teen and student auto insurance in Alaska, compare prices from multiple insurers.

Cheapest Car Insurance in Alaska for Drivers With Bad Credit

As per MoneyGeek's analysis of auto insurance quotes for drivers with bad credit in Alaska, GEICO offers the cheapest quote. The average yearly premium for a GEICO policy for drivers with poor credit is $966. Your actual rate may vary based on your age, gender and other factors.

Read the GEICO review from MoneyGeek to find out more information about this insurance company.

GEICOAnnual Premium966Percent Change15%
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MONEYGEEK EXPERT TIP

Those with poor credit in Alaska may anticipate paying significantly more for auto insurance. The fact that you have terrible credit shouldn't prevent you from getting suitable car insurance. If you take the time to shop around and compare quotes from several providers, you may still be able to get reasonably priced auto insurance despite your bad credit history.

How Much Does Car Insurance Cost for High-Risk Drivers in Alaska?

Automobile insurance companies typically take the driving record and other factors into account to calculate personalized high-risk car insurance quotes in Alaska. That's why high-risk drivers usually pay higher insurance rates.

In Alaska, for example, high-risk drivers pay an average of $1,353 per year for insurance, compared to around $984 for someone with a clean driving record. That's an increase of almost $369.

Annual Car Insurance Cost in AK for Low-Risk vs. High-Risk Drivers

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Annual Premium

Low-Risk Driver

$984
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Annual Premium

High-Risk Driver

$1,353
In Alaska, high-risk drivers pay:$369 more

This is 37% more expensive.

Using MoneyGeek's Alaska auto insurance calculator, you can estimate the price of a car insurance policy depending on details about yourself, including your age, gender, vehicle type, credit score, driving record and level of coverage. Furthermore, our tool can help you determine which factor has the greatest impact on your rate.

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Rates updated:

Jun 22, 2024

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Can You Still Get Car Insurance in Alaska if Insurers Refuse to Insure You?

In a purely voluntary market like auto insurance, being turned down for coverage is a possibility if a provider sees you as too high of a risk. If this happens to you, your best bet is to get in touch with the Automobile Insurance Plan Service Office (AIPSO) to obtain an appropriate policy on the residual market. For 48 years, this non-profit group has been helping high-risk motorists get affordable insurance plans through the auto insurance residual market.

Alaska Automobile Insurance Plan

Using AIPSO's state-by-state database, you can identify a residual market plan that corresponds to your location. The Alaska Automobile Insurance Plan, administered by the Western Association of Automobile Insurance Plans, was established to provide auto insurance coverage to those with eligible risks who are unable to get coverage through the voluntary market. Risks eligible for the Alaska Automobile Insurance Plan are shared among auto insurers in the state of Alaska.

    building icon

    Office Hours

    Monday–Friday, 8 a.m.–4:30 p.m. PT

    subscribe icon

    Email

    alaska@aipso.com

    smartphone icon

    Phone

    (800) 227-4659

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    Fax

    (800) 827-6260

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    Mailing Address

    Western Association of Automobile Insurance Plans, P.O. Box 6530, Providence, RI 02940-6530

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Frequently Asked Questions

If you are a high-risk driver, finding auto insurance may be challenging. MoneyGeek answered some of the most commonly asked questions about high-risk auto insurance in Alaska in an effort to make the process easier for our readers.

Which car insurance company is best for high-risk drivers in Alaska?
How much does car insurance in Alaska cost for high-risk drivers?
Who do insurers classify as a high-risk driver?
Where do I get car insurance coverage in Alaska if insurers reject my application?

Methodology

MoneyGeek calculated average rates using full coverage car insurance policies with 100/300/100 liability insurance and comprehensive and collision coverage with a $1,000 deductible. Minimum coverage car insurance policy rates were calculated based on each state’s minimum car insurance requirement.

To calculate rates for high-risk drivers, MoneyGeek averaged the premiums insurance companies charge for three of the most common driving violations: speeding, at-fault accident and DUI.

To determine the best car insurance company for high-risk drivers, MoneyGeek scored companies based on affordability, customer satisfaction and complaints — obtained from J.D. Power surveys and NAIC complaint scores — and financial strength ratings as calculated by AM Best. Affordability received the greatest weighting in our calculations.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.


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